Hela Pesa Salary Loan

Tag: Cost of living

  • TSC and ODPP Announce 387 Job Vacancies Across Multiple Professional Roles

    TSC and ODPP Announce 387 Job Vacancies Across Multiple Professional Roles

    The Teachers Service Commission (TSC) and the Office of the Director of Public Prosecutions (ODPP) have announced 387 job vacancies across a wide range of professional and administrative roles, creating new employment opportunities for qualified Kenyans seeking careers in the public sector this March.

    The openings span diverse fields including legal practice, education management, finance, auditing, research, information technology (ICT), corporate communications, and office administration. Both institutions have invited qualified candidates to submit their applications online before the respective deadlines later this month.

    ODPP Seeks 217 Employees

    The Office of the Director of Public Prosecutions has advertised 217 vacancies aimed at strengthening its operational capacity as it continues to expand prosecution services and support functions across the country.

    Among the most significant openings are 140 Prosecution Counsel positions at grade DPP Seven, which form the largest portion of the recruitment drive. These positions target qualified lawyers who will be responsible for handling criminal prosecution, legal representation, and case preparation within Kenya’s justice system.

    The ODPP plays a critical role in upholding the rule of law by independently conducting criminal prosecutions on behalf of the state. The recruitment of additional prosecution counsel is expected to improve case handling capacity, reduce backlog in courts, and enhance the efficiency of legal proceedings nationwide.

    Beyond legal roles, the ODPP advertisement also includes vacancies in several technical and administrative areas. These include positions for accountants, supply chain management officers, research officers, audit officers, ICT specialists, corporate communications officers, clerical officers, and office assistants.

    The agency noted that these roles are essential to supporting the operational and administrative functions that ensure smooth delivery of prosecution services across the country.

    Interested applicants are required to submit their applications through the official ODPP online careers portal before March 30 at 5:00 p.m.

    Shortlisted candidates will later be required to present original identification documents, academic certificates, professional certifications, and transcripts during the interview stage. This verification process is part of the standard procedures used in public service recruitment to ensure transparency and authenticity of qualifications.

    TSC Announces 170 Vacancies

    At the same time, the Teachers Service Commission has announced 170 job vacancies aimed at strengthening the management and oversight of teachers across the country.

    The commission is recruiting professionals to fill senior leadership, audit, and field management positions within its operational structure. Among the top-level roles advertised are Senior Deputy Director positions in Human Resource Management and Development, as well as Internal Audit Officers.

    Additional opportunities exist for Deputy Directors responsible for Human Resource Development and Risk Management, as the commission seeks to strengthen its governance and operational oversight functions.

    The largest portion of the TSC recruitment drive, however, targets 132 Assistant Director Teacher Management field officers. These officers will play a key role in supervising, monitoring, and coordinating teacher management activities in schools across various regions of the country.

    Their responsibilities will include overseeing teacher deployment, monitoring professional conduct, supporting discipline processes, and ensuring effective implementation of education policies at the field level.

    Qualified candidates interested in TSC positions have been directed to submit their applications through the TSC online recruitment portal before March 23 at 11:59 p.m.

    Warning Against Fraudulent Recruitment

    Both the TSC and ODPP have emphasized that their recruitment processes are entirely free of charge, warning job seekers against individuals who may attempt to solicit money in exchange for employment opportunities.

    “TSC does not charge any application, processing, interviewing, or any other fee at any stage of the recruitment process,” the commission emphasized in its official notice.

    The commission further clarified that all applications must be submitted through the official online portal, noting that no physical submissions will be accepted.

    Additionally, both institutions warned that submission of fake documents or misleading information will lead to automatic disqualification and may result in prosecution under the Public Officers Ethics Act, 2003, which governs recruitment in the public service.

    With hundreds of positions now open across legal, administrative, and education management fields, the recruitment drive presents a significant opportunity for qualified Kenyans seeking to join the country’s public sector workforce.

  • Civil Servant Loans in Kenya

    Civil Servant Loans in Kenya are financial products tailored specifically for government employees, offering favorable terms to help them manage their financial needs. Given the stability and reliability of civil servant employment, many financial institutions in Kenya provide specialized loan packages for this group, making it easier for them to access credit at lower interest rates, with flexible repayment terms.

    Institutions Offering Civil Servant Loans in Kenya

    Hela Pesa Salary Loan

    Hela Pesa is a digital lending platform in Kenya that provides various loan services, including salary loans. This service is particularly aimed at salaried employees, such as civil servants, who need quick access to funds before their next payday. Hela Pesa operates primarily through mobile platforms, offering convenience and speed in accessing financial support.

    Instant Loans: Hela Pesa offers instant salary advances to help employees cover unexpected expenses before payday. The application process is simple, and loans are disbursed quickly.

    Flexible Loan Amounts: The loan amounts available vary depending on the applicant’s salary and repayment capacity. Hela Pesa uses the salary information to determine the loan limit.

    Short-Term Repayment: Salary loans are typically short-term, with repayment automatically deducted from the borrower’s next paycheck. This makes the loan easy to manage, as repayments are automatically handled.

    Low Interest Rates: As a salary loan provider, Hela Pesa offers competitive interest rates compared to traditional payday lenders, making it a more affordable option for salaried employees.

    Eligibility: To qualify for a Hela Pesa salary loan, applicants usually need to provide proof of employment, such as a payslip or employment contract. The applicant’s salary account must also be linked to the loan provider for automatic repayment.

    Mobile-Based Application: The entire loan application and management process can be done via mobile phone, ensuring that borrowers can apply and repay loans from anywhere at any time.

    Commercial Banks

    • Several banks in Kenya, such as KCB (Kenya Commercial Bank), Cooperative Bank, and Equity Bank, offer dedicated loan packages for civil servants. These banks provide a wide range of loan products, including personal loans, mortgages, and car loans, with favorable terms.

    SACCOs

    • SACCOs are popular among civil servants because they offer lower interest rates and more flexible terms compared to traditional banks. Some SACCOs specifically cater to government employees, such as the Mwalimu National SACCO (for teachers) and Stima SACCO (for employees in the energy sector).

    Government-Backed Loan Programs

    • The Kenyan government has launched several initiatives to support civil servants, including low-cost mortgage schemes and affordable credit facilities to help them improve their financial well-being.

    Types of Loans Available for Civil Servants in Kenya

    1. Salary Advance Loans:
      • These loans provide civil servants with an advance on their salary, allowing them to access funds before their payday.
      • Typically, these loans are short-term, with repayments being deducted directly from the borrower’s next salary.
      • Interest rates on salary advances are often low, and approval is usually fast.
    2. Personal Loans:
      • Personal loans for civil servants can be used for various needs, such as medical bills, home renovations, or educational expenses.
      • These loans generally offer longer repayment terms, with repayments deducted monthly from the borrower’s salary.
      • Interest rates are competitive, and loan amounts are based on the borrower’s income and ability to repay.
    3. Mortgage Loans:
      • Civil servants in Kenya can access home loans to purchase or build houses.
      • These mortgage loans typically have longer repayment periods, often extending up to 20 or 25 years, with relatively lower interest rates compared to the private sector.
      • Many banks and SACCOs (Savings and Credit Cooperative Organizations) in Kenya offer specialized mortgage plans for government employees.
    4. Car Loans:
      • Car loans allow civil servants to purchase vehicles with flexible repayment options.
      • These loans can cover up to 90% of the car’s value, and repayments are spread over a few years, with the interest rate and repayment period dependent on the borrower’s financial situation.
    5. Emergency Loans:
      • Emergency loans cater to urgent, unforeseen expenses such as medical emergencies, funerals, or sudden repairs.
      • These loans are processed quickly and offer civil servants immediate access to funds in times of need.
      • The repayment terms are usually short, with direct deductions from the borrower’s salary.
    6. Education Loans:
      • Education loans are available to civil servants who wish to further their education or fund their children’s education.
      • These loans typically have favorable interest rates and longer repayment periods to ease the financial burden on the borrower.

    Features and Benefits of Civil Servant Loans in Kenya

    1. Competitive Interest Rates:
      • Civil servants enjoy lower interest rates compared to those offered to individuals in the private sector. This is due to the perceived job security and stable income of government employees, which lowers the risk for lenders.
    2. Automatic Salary Deductions:
      • Repayments are often made through check-off systems, where loan payments are deducted directly from the civil servant’s salary. This reduces the risk of default and ensures consistent repayment.
    3. Flexible Repayment Periods:
      • Loan repayment periods for civil servants can be extended, sometimes up to 84 months or more, depending on the type of loan. This allows for manageable monthly payments, easing the financial burden on borrowers.
    4. Quick Processing and Approval:
      • Many lenders have streamlined loan approval processes for civil servants, resulting in faster disbursements. This is especially beneficial for loans needed in emergencies or for time-sensitive purchases.
    5. Higher Loan Limits:
      • Given their stable employment status, civil servants may qualify for higher loan amounts compared to individuals in the private sector.

    Eligibility and Requirements

    To qualify for a civil servant loan in Kenya, applicants typically need to meet the following criteria:

    • Employment: Must be a confirmed civil servant, with a valid employment contract or letter from the employer (e.g., Teachers Service Commission, National Police Service, Ministry of Health).
    • Salary Account: Must have a salary account with the lending institution or be willing to open one.
    • Age: Must be within the working age limit, typically between 18 and 60 years old.
    • Credit History: Some lenders may check the applicant’s credit history with the Credit Reference Bureau (CRB) to ensure they have a good repayment track record.

    Conclusion

    Civil servant loans in Kenya provide an essential financial service to government employees, offering them access to credit with favorable terms. These loans are designed to help civil servants meet both their personal and professional financial needs, from emergencies to long-term investments like housing and education. Through partnerships with banks, SACCOs, and government programs, civil servants can access tailored loan products that support their financial stability and growth.

  • 6 reasons why you should hire a professional financial planner

    6 reasons why you should hire a professional financial planner

    Navigating the complexities of personal finance can be daunting, particularly as financial landscapes evolve and individuals face increasingly diverse investment options and retirement considerations. In this intricate realm, a professional financial planner emerges as a beacon of expertise and guidance.

    Who is a Financial Planner?

    A financial planner is a trained and certified professional who specializes in helping individuals and families manage their finances effectively. Their primary objective is to assist clients in achieving their financial goals, whether it’s saving for retirement, purchasing a home, funding education, or building wealth for the future. Financial planners employ a comprehensive approach, taking into account various factors such as income, expenses, assets, liabilities, risk tolerance, and long-term objectives to craft personalized strategies.

    What do they do?

    The job of a financial planner encompasses a wide array of responsibilities, all aimed at providing clients with sound financial advice and strategies tailored to their unique circumstances. Here are six reasons why hiring a professional financial planner can be invaluable;

    1. Financial Expertise

    Financial planners possess specialized knowledge and expertise in various aspects of finance, including investment management, tax planning, and risk management.

    Given the complexity and ever-changing nature of financial markets, having a professional with deep expertise is crucial. Financial planners can analyze market trends, identify opportunities, and navigate risks effectively on behalf of their clients.

    With their expertise, financial planners can devise customized strategies that optimize clients‘ financial situations, maximize returns, and minimize risks. This expertise ensures that clients receive informed guidance tailored to their specific needs and goals.

    2. Goal Setting and Planning

    A fundamental aspect of financial planning is setting clear, achievable goals and developing strategies to reach them.

    Many individuals struggle to articulate their financial goals or develop actionable plans to achieve them. Financial planners facilitate this process by guiding clients through goal-setting exercises and creating personalized financial plans aligned with their aspirations.

    By helping clients define their financial objectives and creating roadmaps to achieve them, financial planners empower individuals to take control of their financial futures. This clarity and direction increase the likelihood of success in reaching long-term financial goals.

    3. Risk Management

    Financial planning involves assessing and mitigating various risks that could impact an individual’s financial well-being.

    Unexpected events such as market downturns, illness, or disability can have significant financial implications. Financial planners evaluate clients’ risk tolerance and implement strategies to protect against these risks, ensuring their financial security.

    Financial planners help clients safeguard their assets through prudent risk management strategies and achieve greater financial resilience. This proactive approach minimizes the impact of adverse events and preserves clients’ long-term financial stability.

    4. Investment Management

    Building and managing investment portfolios is a core aspect of financial planning, aimed at achieving clients’ financial goals.

    Constructing a well-diversified investment portfolio requires expertise in asset allocation, security selection, and risk management. Financial planners leverage their knowledge and experience to design portfolios tailored to client’s objectives and risk preferences.

    By overseeing clients’ investment portfolios and making strategic adjustments as needed, financial planners aim to optimize returns while mitigating risks. Their proactive management ensures that clients’ investments remain aligned with their financial goals and evolving market conditions.

    7 things you need to know about Fixed Deposit Accounts in Kenya

    5. Tax Planning

    Tax planning is integral to financial planning, as it aims to minimize clients’ tax liabilities and optimize their after-tax returns.

    Taxes can significantly erode investment returns and overall wealth accumulation. Financial planners employ various tax-efficient strategies to help clients maximize deductions, minimize tax liabilities, and optimize their overall tax situation.

    Through effective tax planning, financial planners help clients retain more of their hard-earned money and enhance their overall financial outcomes. By structuring investments and transactions in a tax-efficient manner, they ensure that clients’ wealth is preserved and enhanced over time.

    6. Ongoing Monitoring and Adjustments

    Financial planning is a dynamic process that requires regular monitoring and adjustments to remain effective.

    Financial markets and individual circumstances can change rapidly, necessitating ongoing review and adaptation of financial plans. Financial planners provide continuous monitoring and make necessary adjustments to ensure that clients remain on track to meet their goals.

    By staying actively engaged in clients’ financial lives and making timely adjustments to their plans, financial planners help mitigate risks, capitalize on opportunities, and optimize outcomes. This ongoing support fosters greater financial confidence and resilience, even in the face of uncertainty or market volatility.

  • 4 ways you can waste your salary and how you can stop it

    4 ways you can waste your salary and how you can stop it

    4 ways you can waste your salary and how you can stop it

    The man who invented money should be raised from the dead and awarded a Nobel Peace Prize. If not, then he should be awarded one posthumously. Were it not for him, the world of commerce would have been cold, dark, and uninhabitable, devoid of any currency. From the moment we conceptualized that we can exchange a few cowrie shells for whatever we wanted, a much-needed ray of sunshine penetrated an otherwise dank existence that was batter trade.

    Since then money, in its numerous forms, has occupied human thought throughout the millennia. It has not only made commerce easier but also ensured that people do whatever they want as they’re compensated. From the time of the Industrial Revolution, the notion of salary has been the top thought in a working man’s mind. Were it not for money, very few, if any would risk trudging through the waking cycles to go to work on Monday.

    As such, careful spending of your hard-earned money should be a priority. But like most humans, advice follows the path of least resistance going from one ear to the other without having any interaction at all with the brain. Careful spending is thrown out of the window as we let wastefulness in, not knowing that we’re reducing the quality of our lives.

    Here are some of the ways we waste what we’ve worked hard for, and thankfully, how we can avoid it.

    Not negotiating with your employer

    This is probably one of the most overlooked methods of wasting your salary. It’s so featureless and colorless, we never see it at all. The goal of wastage, especially money, is to leave you with less of something, thus causing an inadequacy. Not negotiating enough for your salary smacks right into this. Having less salary, and especially having less because you never negotiated for it, can set you back severely. Though this might not be an active method of wastage, it has brought misery and frustration to new employees when they realize that what they earn is barely enough to support them.  If you do not wish to work for peanuts, negotiate for your salary to ensure that you are paid your work\’s worth.

    Now, I know that work is very scarce nowadays and with the evil twins of post-Covid times, little work and inflation holding the world by the throat, landing a job however unfulfilling, can produce feelings of achievement and exhilaration. However, you shouldn’t forget that you are working for pay. Unless you are in the “find what you love and you’ll never work a day” brigade, chances are that you are working an uninspiring job if only to put food on the table.

    Life doesn’t start or end with putting food on the table. You must be compensated for the amount of work you do, and that means that you must negotiate with your employers when it comes to your salary.

    Keeping up with the Whoever

    This is the sure bet of wasting money and salary. Keeping up with the [insert rich neighbor\’s name], will not only waste your money faster than a sieve can leak but will probably cause you extremely high blood pressure. You have a right to live comfortably. That I agree with, but buying a washing machine because [reuse name here] bought a French-door Samsung refrigerator with Sabbath mode, when your gross untaxed salary is 50,000 blurs the line between madness and stupidity.

    You must live within your bounds if you are to plug wastages that needlessly eat into your salary. Boundless comfort is for billionaires, and dollar billionaires for that matter, which I know you ain’t. Stick to your lane and drive your money according to your level of richness. This statement shouldn’t limit your imagination though. If you need more money, or if your comfort levels cannot fit into your salary, you can look for an extra source of income. Borrowing to touch up your image is a no-no. But you are allowed to borrow to start a business to get more money to finally live like your neighbors. Please head over to our website to register and we’ll give you an unsecured loan to make your dreams come true.

    Excessive indulgence

    There are three types of people in the world. Those who keep meticulous budgets, those who don’t, and those who don’t even know what I’m talking about. But like all things human, this difference is but superficial for there is only one thing that unites them: Entertainment money. This money does crazy things, some are even censored in Hell. Some slot it into their budgets while others spend willy-nilly, not caring where the bill might fall. I’m guessing a large majority are the willy-nellies as Entertainment money has been known to take up as much as 150% of some salaries.

    I am a nice guy, and thus not inclined to crimp the roundedness of your mojo, but if you do not want to murder your salary, I’d suggest you limit your portion of Entertainment money. I have a clear understanding that Kenya runs on Alcohol on weekends but too much entertainment, be it liquid or smoked or live or whatever form your entertainment is, is not only bad for your health but is known to cause one of the worst conditions of the 21st century: Poverty.

    Emotional Spending

    Man is a creature that craves comfort, whether emotional or physical. And if he cannot find it naturally, then he is apt to want to buy it. And for some reason, if he finds he is addicted to it, he\’ll pursue it even with the possibility of destruction. Buying indiscriminately as a means to chase emotional comfort is one way to destroy your hard-earned money. Though it\’s advisable to gift yourself now and then, it’s a pure danger to be dependent on it, as this will make you buy things that you absolutely have no use for. This will make you look and sound not just vain but probably financially illiterate in the end.

    Conclusion

    Cutting back on spending might be a difficult job, and I hear you. But like all good things, they take time, cost too much in terms of emotional price, and have no business associating with a sane human. If you take time, however, and practice, you will overcome. Work hard and you’ll see the fruits of your labor.

  • Buying school supplies Now will be the best decision you’ll ever make. Here’s why

    Buying school supplies Now will be the best decision you’ll ever make. Here’s why

    Remember Loci? Surds? High school maths? Congratulations, me neither. But even as we indulge in selective amnesia, I think you will agree that school is an indispensable part of modern life. Had it not been for school, most wouldn’t be where they are, wherever that is. That’s good. The bad comes when we have to buy supplies for our children at the beginning of every school year. The ugly is when we have to pay school fees.

     Now, I know we’re in Ditheba, in a festive mood, ready to Parte and I’m probably ruining that now but come January 18th, the weirdly crazy, bitter reality will set in and have you queue in bookshops and tailor shops everywhere looking to buy school supplies for CBC and 8-4-4 manenos. Tempers will flare and enough anger will be burnt to probably cause flash floods in Antarctica.

     I have a secret that will get you out of the impending jam and since I care about you, I’ll let you into it. OK, listen (or read) carefully. To avoid all the hassle that comes with January shopping, buy your school supplies now. Capisce?

    Here’s why:

    You are (probably) not broke now

    The Kenyan calendar is the third most unique after the Ethiopian calendar. Ethiopians are in 2015 and we have Njaanuary. That dreaded month that people loathe, and wish to purge off the calendar and have it burn in hell in the company of rainy Mondays. For a majority, this is a month of intense heat, unrelenting brokenness, empty wallets, and small fortunes to pay back to Fuliza and its ilk. What’s worse, they have restored the academic calendar to default settings. Meaning that kids will be heading back to school when you’re at your most broke.

    However, I’m thinking that you’re not as broke now as you will be in January. After all, you have a Hustler Fund Loan. And the best way to use that money would be to do school shopping now. As Warren Buffet once quipped, be greedy when others are fearful, and be fearful when others are greedy. Now is the time to be fearful of spending all your money on merriment. People are greedily spending their cash to indulge themselves, which is a terrific thing, and while I do not wish to be Jeremiah tough times are coming. Do your school shopping now rather than in January and I promise you will not regret it.

    If, however, you are strapped for cash, head over to our website or to the Play Store and download our app. We will sort you out to enable you to buy the books, pens, and Daddie’s new uniform. This way, your loan will quickly be paid via a check-off account for tangible school shopping you can see, rather than have Fuliza gobble up your cash for a hangover you only felt and probably hated.

    You will have premium peace of mind

    The keyword here is premium. The hassles and jostles of January school shopping have seen marked depression among parents to the extent that some have had to take anti-depressants. But that doesn’t need to happen to you, because I know you are smart.

    In the space that is post-modernity, mental health, and wokeness, your peace of mind is the most valuable thing you can have. After all, everything in your life hinges on your sanity, right? Improving mental health does not need to happen in large dollops or in big swoops but in small pellets and little sips. Taking one step at a time, for example by shopping for school materials now will help improve your mental well-being.

    Come January, parents will face the double-edged sword of school fees and shopping with virtually no defence. You, however, will only face a single-edged sword that is school fees. Meaning that you will have a fifty per cent chance of surviving January with your peace of mind intact. Those are odds I’d be very comfortable wagering on.

    You will save money

    This is the Holy Grail of shopping. Saving money. And there is no better way to save than to be early, correct? This especially rings true for seasonal goods like books, pens, and other school supplies. The thing with seasonal goods is that their demand and supply rise and fall based on the time we need them the most. For gumboots and umbrellas, it is during the rainy season. For school supplies, it is January.

    Buying seasonal goods when their peak demand has not been reached yet or has passed is the best way to save cash. Now, for school supplies, they are best bought before they are needed and that is now. Coupled with the need for stock turnover retailers might get you very good deals on them. This, though, will require you to be in the right place at the right time doing the right thing. Which is shopping for your school supplies now before there is a shift and movement in the curves of demand and supply. Head on to Jumia to see what I’m talking about.

    You will have choices

    Shopping early gives you an array of choices. Since you will not be scrambling with other shoppers for goods that are not available because of artificial shortages and hoarding, you will have the pick of the litter. This allows you manoeuvrability in terms of the quality of products that you want to buy, ensuring that you give your children a better start.

    Having a choice further enables you to dodge shortages that might cause havoc to your otherwise impeccable budget. If you are a stickler for quality products, shortages will see you spending more than you anticipated or, conversely, have you buy low-quality products on the market. Either of these routes will see you spend more in the long run and in this era of high inflation, spending more will derail you badly.

    To avoid all this shop early, shop now.

  • Borrowing like a Pro: Tips to help you secure loans

    Borrowing like a Pro: Tips to help you secure loans

    Have you ever been in a tight position? A very tight position? A very tight position where nobody is willing to lend you money yet you need it more than the oxygen that’s keeping you alive? Well, if you have then you wouldn’t be the first. Or the last. People and institutions, contrary to popular opinion, do not lend money. Instead, they lend trust in the form of loans. And as we know, trust is the foundation of business.

    When you default on your loan, whether given by an institution or an individual, you do not just fail to pay what you owe but you send beacons pointing to your lack of trust. And there is not enough trust to go around. This is why it becomes extremely difficult to be able to borrow again once you default. Rebuilding that trust once shattered is an expensive endeavour that few, if any, are willing to take.

    A pro borrower, therefore, takes in this information and comes to the understanding that loans are more than just monetary, they’re emotional. When pro borrowers take loans, they know that they are dealing with individuals. People have feelings and egos, and when they approve loans, they stick out their necks. Defaulting is akin to messing with their emotions. Humans hate it when people mess with their emotions.

    To be a pro borrower, therefore, means that you must understand what makes people tick. To do that:

    You must cultivate good relations with your lender(s)

    The relationship between a borrower and a lender can be either one-to-one or one-to-many. A one-to-one relationship refers to where a borrower, in this case, you, only deals with one lender for your loan needs while a one-to-many relationship is where you borrow from several lenders simultaneously. Both have their pros and cons. Sometimes, current prevailing economic conditions force people to lean towards a one-to-many kind of relationship.

    A pro borrower, however, understands that the type of relationship is insignificant. A pro borrower understands that a relationship between them and a lender must be underwritten by trust and loyalty. What drives a relationship is more important than what kind of relationship it is. A good relationship provides numerous advantages compared to a cold walk-in customer. For example, if you cultivate better relationships with your lenders, then you might have lenient repayment options compared to ones who don’t cultivate good relationships.

    It’s therefore crucial as a pro borrower, that you maintain good relations with your lender. It’s a great asset to have.

    You must have a repayment plan

    This applies to both loans given by either financial institutions of friends and family. As a pro borrower, you must have at least a basic understanding of financial management. Managing your finances successfully provides you with an opportunity to know how and when you’ll need to repay what you’ve borrowed.

    It’s even more crucial that you do this for informal loans, that is the ones provided by family. Financial institutions provide a framework on which a payment plan hangs that you must adhere, failure to which measures might be instituted against you. These payment plans act as a guardrail, preventing you from falling into default. Informal loans do not have recovery measures.

    However, one thing that family loans have is the far-reaching consequences of broken trust. When you do not repay your loans, you risk being the black sheep; an untouchable that no one wants to associate. Thus, before you borrow, ensure that you have a plan to repay it.

    Having a repayment plan, especially a written one ensures that you project yourself as one who understands themselves and thus knows what they’re doing.

    You must make payments on time

    Like Esau and his brother Jacob, paying your loans on time is the twin brother of having a repayment plan. The latter clutching the heels of the former. An elaborate payment plan is not worth the effort put into it if the plan does not translate into timely payments. A pro borrower understands that they do not just pay they pay on time.

    Making payments on time reinforces the idea that people can stick out their necks without losing them. It goes on to show that you are someone who can be trusted because paying loans is not just about money. On the face of it, yes, it’s about money. But if you dig a little deeper, you’ll realize that it’s about character. A good name opens doors that money can only dream of. Make sure you pay on time.

    You must only borrow what you need

    A sudden influx of cash is a wet dream for broke people. But, unless that influx (read loan) is to start or boost a business, buy a house or attend a pressing emergency, forget about it. Borrowing for non-issues like throwing a lavish party or going on a trip should be an economic no-no. I suggest that you find yourself a Jesuit and exorcize their demonic thoughts. Life is short, and you should do things that crinkle your face in unfathomable joy. But if those crinkles are going to land you in bad debts that might ruin you, forget them.

    Borrowing for consumption is expensive, emotionally and financially. This is further made worse by borrowing for intangible things i.e., things that you cannot see. This will entangle you in a cycle of debt from which extricating yourself might take a toll on your well-being.

    As a pro borrower, you must understand why you borrow. You must question yourself at length and, if you find out that you can do without some things and not severely jeopardize your life, then by all means stay away. You must have a keen understanding of your financial position and only change that position to borrow only if it’s necessary.

    A pro borrower, therefore, is one who not only understands themselves but also does so on a deeper level. To be a pro borrower, you must strive to build and foster trust in yourself. It means that you must be aware of where who you are and what you need intersect and how you can leverage that intersection to make your life meaningful when it comes to loans.

  • The 80/20 rule you can use to simplify your budgeting process

    The 80/20 rule you can use to simplify your budgeting process

    It might seem simple but sometimes budgeting can be an overwhelming experience. What do you prioritize? What comes first in your budget list? How much time should you spend planning out your budget? 

    The fact that you have to track every expense in your life to come up with an accurate budget can be a daunting task, to begin with. The 80/20 budgeting offers a better solution to this issue. It makes tracking your day-to-day spending easier and makes coming up with a budget a far much better experience.

    Most Kenyans live paycheck to paycheck without any form of planning concerning their income and expenses. This is a dangerous way to approach your personal finance. The 80/20 rule will help you get your finances back on track and gain control of your spending.

    What is the 80/20 rule?

    The 80/20 rule is known as the Pareto principle and it is used in the Pareto analysis of businesses. Pareto was an economist who use an illustration to show how the principle works. He noticed that when harvesting his peas, 20% of the pea pods were responsible for 80% of the harvest. 

    He further proved his observations in Italian macroeconomics. In 1906 he observed that 80% of the Italian wealth was owned by 20% of the population.

    How 80/20 rule work in personal finance

    The basis of the principle is simply that 80% of results come from 20% of input. This assumption has two meanings pertaining to budgeting and savings in one’s life. In your budget, the 20% is what you pay yourself as savings and the 80% will go to making your living comfortable.

    Let’s look at an example. Let’s imagine I am an entity like a limited company. As an entity, I have Expenses and Revenue. If my expenses are more than my revenue then I am not a profitable entity and I might be looking at bankruptcy soon.

    This applies to personal finance too. If your personal expenses are higher than your income, it means you are broke, regardless of how many assets you have. 

    Back at the company, if we want to bring it back to profitability we have two options, increase our revenue or cut back on our expenses. Further profitability will be achieved if we can increase our revenue and cut back on expenses.

     Ironically, the 80/20 rule will be applied to identify the most crucial parts of the business that should be accelerated and the least useful expenses that should be cut.

    In your personal budget, 20% will be your personal profit from your earnings. The 80% will be used to take care of your expenses. Like a good business, you must be vigilant to ensure you are increasing your profits, either through increased earnings or ruthlessly cutting down on unnecessary expenses.

    The Pareto principle can be observed in savings too. The 20% saved will be more crucial to your life goals than the 80% you will spend on the day-to-day running of your life.

    Note that, this does not make the 80% less important. This is a fallacy. What it means is simply that you chose to prioritize the 20%.

    80/20 Rule Budget

    The 80/20 budget is a percentage breakdown budget method where we break our budget down into percentages. It dictates that you first save 20% and spend 80% on your expenses. 

    The 80/20 rule emanates from the 50/30/20 rule which is used to cut the expenses into 50% needs and 30% wants. The 80/20 rule combines wants and needs into one category, expenses.

    The budget percentile for the 80/20 rule should look like this:

    • 80%-personal expenses
    • 20%-savings.

    Advantages of using the 80/20 rule

    The 80/20 is an easy budgeting tool and can help you get your budget in order quickly. It has several advantages which make it a suitable tool for those on the go.

    • It is very simple. The 80/20 rule is very simple to follow. It gives you a fixed number to work with regardless of your income. It does not stipulate fixed spending which many might not be good at following.
    • Easy to turn into a habit. It is very easy to internalize the 80/20 rule into the day-to-day running of your finances.  You can make a budgeting habit without any need for apps or special tools. It requires the discipline of sticking to the stipulated rule.
    • Automate your savings. You already know how much to expect each month, it’s a matter of arranging with your bank for 20 percent of it to go to your saving account. This will save you the temptation of spending the money while it is still accessible.
    • Time efficient. In the modern world, things move fast and so should your budgeting needs. You can set your 80/20 budget in a matter of minutes since it has just two inputs to take care of.
    • Excellent reliability. By giving you the 80%, you get to decide how to spend most of it but always ensure that you have saved first. This leeway gives you maneuvering when it comes to your expenses. You don’t need fixed spending as long as it is below the stipulated 80% each month.
    • It can be nested. In computer programing, the ability to nest a function inside another one makes programs much more efficient. The 80/20 rule can also be nested. You can move from just saving to also applying it to the expense itself to identify the 20% of expenses that take up 80% of your budgeted spending.

    Conclusion

    The 80/20 rule started in macroeconomics in the 20th century. Over time it has proven itself and filtered into every industry and finally personal finance.

    The 80/20 rule can be applied in budgeting to encourage more savings. It saves time by having a few variables that need to be addressed each month. It can be automated for those with fixed monthly salaries. 

    Finally, can you tell us what kind of budgeting rule you use? How is it working for you? Do you think the 80/20 rule can improve your budgeting and saving needs?

  • Five Things To Keep In Mind About Personal Finance

    Five Things To Keep In Mind About Personal Finance

    Personal Finance

    Managing personal finance is a long-term commitment that can confuse even the most seasoned financial veteran. The issue is over time even a well-thought-out plan can run out of steam due to circumstances out of our hands.

    Personal finance covers both short-term and long-term goals pertaining to your financial goals. Personal finance skills are essential regardless of your age or income. If you need to learn how to manage your finances you have come to the right place

    Personal Finance

    Personal finance is a broad term that covers money management, savings, and investment. Personal finance can be summed up as the knowledge of how to plan your financials by understanding personal cash flow and coming up with a solid plan to manage it to meet your financial goals.

    Why is it important to manage your personal financials

    To avoid being in a constant financial crisis mode. When you don’t have your financials in order, any small emergency will turn into a crisis. 

    During the coronavirus pandemic, the entire economy shut down for months forcing governments to intervene, if they could afford it. The majority lost their jobs and without a social safety net in Kenya, you were expected to float on your own. It was a painful experience that left the majority of the populace at the mercy of government handouts that rarely came. 

    Those who had savings faired well, especially those who were willing to cut back on expenses and focus on important needs.

    This is why personal finance is important. Having a good grasp of money and how to manage it can lead to a better quality of life.

    Personal finance is a broad field and covers a lot of topics. We are going to look at five of the most important that you should keep in mind.

    Debt

    Debt is often underestimated when people evaluate how important it is going to be in their financial plans. Debt plays a crucial role in huge purchases we undertake in life. Debt is used to finance land purchases, house construction, vehicle purchase, and education.

    So the question is how do you manage your debt? How much debt can your income finance?

    Debt has a cost just like any other good you purchase. This is the interest you pay on the loan. When budgeting for a debt, you should understand its cost in form of interest and how long you will pay for it. The outcome of these calculations will give you the true cost of the debt.

    How you use your debt will define its place in your personal finance statement. 

    Most large loans will have a predefined use; like a mortgage which can be used to finance a house purchase, or a car loan for a vehicle. Why you make this purchase is important since they may help in repaying the loan or force you to bankruptcy. A good loan leaves you with an asset after you have finished your payments. 

    Credit is not a loan. Credit doesn’t have any predefined use. They are short-term 1 to 12 months compared to loans which have 5 to 10 years repayment plans.

    Income

    Income is the source of revenue for your personal finance. You can have more than one source of income. The amount of income you bring in will be the source of all your personal spending and savings. Your gross income will take care of your taxes and deductions. After deduction, you are left with net income to budget for your needs and wants. We recommend the 80/20 rule to help you in your budgeting.

    Income can have different sources. This include:

    • Wages
    • Dividend
    • Rental income
    • Salary

    It is important to note that your income will determine your liquidity. Most of your savings can’t be accessed all the time otherwise they stop being savings accounts. Your income budget should take care of emergencies.

    Saving

    Savings are what you keep after you have taken care of your personal expenses. Saving is armed to cover large expenses and emergencies. Savings offer opportunity cost since it’s idle money. Liquidity can be traded through borrowing. It has good returns through interest if you are willing to loan your savings through an intermediary like a bank.

    Banks offer access to money markets by functioning as an intermediary between the saver and the borrower.

    Various institutions offer consumer savings in Kenya. This includes:

    • Saving Banks
    • Deposit-taking Saccos
    • Mutual Saving banks
    • Credit co-operatives

    Do your research on institutions near you and see which has the best returns on their savings account. 

    Note that savings should not be treated as investments. Savings are for covering emergencies in the long term while investments are for long-term increases in personal wealth.

    Investing

    Investing involves purchasing assets on the premise that they will appreciate in value and increase the value of your investment.

    Investing is aimed at increasing the value of an individual’s wealth by speculating on the future growth of the asset. Investing unlike savings carries a risk due to exposure to market volatility and can register a loss on your investment.

    Investing can be quite complex and can take a while before one is good at it. Moreover, it is important that you educate yourself on the simple functioning of the markets to get a good idea of how the market behaves.

    There are several forms of investment currently in the Kenyan market. Some of them include:

    • Bonds 
    • Stocks
    • Commodities and derivatives
    • Mutual funds
    • Index Funds
    • Exchange-traded funds

    Investments carry huge risks because they tend to have huge returns for those that make them. It’s important to understand the industry you are investing in to see if it has future growth potential.

    Spending

    Nobody can survive in the modern world without spending. Most of our income goes to personal expenditures that just can’t be avoided. Spending can get out of control if not well managed.

    Spending is the outflow of cash from income. The bulk of income goes to spending including basic needs like housing, food, and clothing.

    Spending should fit into your budget. By planning your spending you can finance your purchases without any need of borrowing which comes with an extra cost. Plan to live within your means to minimize unnecessary spending.

    Spending decisions are always dictated by income. This means you have to make choices on what you spend and the utility you will get out of the purchase.

  • Tactics to Saving Fuel this Festive Season

    Tactics to Saving Fuel this Festive Season

    Oil is the opium of the world. The dose that keeps the world patient while it’s being overloaded with climate change, extremism, poverty, and every other manner of garbage. The world is addicted to it and I doubt if there is any detox program to wean itself off. To put it into perspective, the world consumed close to 99.4 million barrels of oil per day this year. This addiction has made the House of Thani family of Qatar very rich, by the way. The family is worth close to $335 billion. Meaning that if they add nothing to their fortune and consume $1 billion a year, their fortune will run out in the year 2357. Yeah.

     Oil and its offsprings get us high, and we’re never coming down. But, being the good humans we are, moderation is our virtue, and although we love largesse, our conscious dictates we save here and there. This is why I bring you this post ladies and gentlemen. We are speeding into the festive season at sixty minutes per hour. The period when we spend and simultaneously strive to save. To reach my quota of goodness this year, I am going to offer some insights to help you save fuel this season. Ready? Let’s Go…

    Clean your filter and change your engine oil

    This is Saving Fuel 101. Want to save fuel? Service your vehicle.

    Saving fuel has never been this easy, but many people never bother. As a distinguished member of the Amateur Mechanics Association of Kenya, I bring you a special message from the automotive gods. Change or clean your filter regularly and you will save a lot of fuel. Don’t believe me? Well, try to keep up.

    Everything requires oxygen to burn, including the fuel in your engine. The work of an air filter is to, well, filter the air of dust and other debris from getting into your engine and damaging it. However, if it’s clogged, less air passes through and thus little of it enters the engine. From basic science, we know that air is made up of approximately 21% Oxygen. Less than a quarter. So the less air, the less oxygen available for burning your fuel. Your engine, on the other hand, has a fixed capacity and if less air is drawn into the cylinder per charge, it will gladly fill the remaining percentage with extra fuel. Resulting in a rich mixture. Since there is less air to burn that fuel, the oxygen will bind with whatever fuel it can burn and release the rest of the unburnt fuel as black smoke. Do this a few thousand times per minute and your vehicle turns into a fuelaholic. A guzzler. Consuming your fuel in a manner likely to suggest that it doesn’t like you. Which is terrible, especially if you intend to save on fuel.

    Oil, as you know, lubricates your engine. If you don’t change it regularly, it becomes heavy. Which in turn reduces its lubricating capability, making the engine strain to overcome the extra friction, making it work harder than necessary. And you know what happens to an engine when it works hard? No, it doesn’t get paid more, Ernesto. It consumes more fuel. Jeez!!!

    Reduce idling and unnecessary revving

    Idling is sometimes unavoidable in the modern world. And the more modern the world becomes, the more our vehicles will idle. This is a fact that won’t save you fuel, anyway. We spend more time at junctions, red lights, and traffic jams because the infrastructure grows slower than the rate we buy cars. On average, it’s estimated that we spend close to 3-4 hours every day on the commute. Keeping your car idling for even a third of that time will cost you about 0.64 liters of fuel. This is because, as the engine idles, it’s consuming fuel, doing no work. Wasteful. If you’ve to spend more time idling in traffic jams, the best strategy is to turn off your engine. This will help you save fuel because your engine will only run to drive your vehicle. Now that’s smart.

    Note: Don’t do this if your engine has a hard start. It will embarrass you.

    Revving you’re your engine is the most wasteful thing you can do. Some motorists rev their engines after starting. Why? It’s pointless and adds nothing except waste fuel by unnecessarily straining the engine. The basic procedure is to start, idle, and drive. Unless your engine has a hard start, don’t rev it, especially if you’re trying to save fuel. However, if you’re not trying to save fuel, rev baby rev. 

    Avoid thrashing your engine

    If you have a heavy foot, go see a doctor. It might be a condition. But if seeing a doctor is not on your bucket list, then hear me out. Putting the pedal to the metal, the symptom of a heavy foot, will not:

    1. Make you go any faster
    2. Make you look any cooler
    3. Save you any fuel

    Unless you have an electric car, which I know you don’t desist from smashing the pedal to the floor. This is because your car weighs at least a ton, and therefore will need to overcome its inertia before picking up any discernible speed. Suddenly stomping on your accelerator, as you move, opens the throttle body wide allowing maximum fuel into the engine with little work. All this just wastes your fuel.

    This also goes for your driving. Unless you’re a getaway driver in a robbery, it makes little sense to make your engine scream. Learn to operate your engine at optimum rpm to suit your driving. This will not only help save you unnecessary visits to the mechanic, but it will also go a long way in helping you save on fuel.

    Walk

    No brainer. The best way to save fuel is to not use your car. 

    Get a Prius

    This is my favorite. If you have some 3 Million shillings lying about that you have no use for, get yourself a Toyota Prius. This move will save you some crazy amounts of fuel. According to Toyota, the Prius returns about 56 mpg combined. For every 100 km traveled, a Toyota Prius will use an average of 4.2 liters of petrol. A Premio returns 8.3 liters per 100 km. If you were to travel from Mombasa to Kisumu, a distance of about 825.5 km, assuming every other thing is held constant except fuel, the journey will cost you about 6,000 shillings in a Prius. Yeah, I know, that’s 4000 more than an Ena Coach ticket. That’s, however, about 6,000 shillings less than what a Premio will consume in fuel. What’s more, you will finish the journey earlier as the Prius has 136 hp compared to a Premio’s modest 125 hp. Talk about being outclassed.

    Please Note;

    This is not an exhaustive list. It’s but a tip of a very long list. However, if you are to learn anything from the list, it’s that it doesn’t need to take drastic measures to save fuel (well, except the last one). Doing the above will save you a lot of money in the future. And as you speed along into the festive season, I wish you nothing but the best and happy fuel saving.

    Sorry, it’s me again. I couldn’t leave you without a call to action so, here goes nothing. Hela Pesa Salary Advance supports this post. Please head over to our website or download the Hela Pesa App for a quick Salary Advance this festive season.